Future & Options: Want to Know More?
Dr. E. Bruce Godfrey
USU Extension Economics Specialist
This spring a series of risk management workshops were held at 13 locations in Utah. One of the topics that was briefly introduced was the use of futures and options. In addition, USDA has sponsored several pilot projects where milk producers were assisted in using the futures market to reduce price risk. As a result of these meetings and the associated publicity several producers asked that workshops be held that would provide additional information on the use of futures and options. Four two-day workshops were held this spring. These were attended by a few dairy producers. Some of those in attendance have suggested that other sessions be held and that they be more focused on only one industry (e.g., dairy). In addition, extension personnel in Idaho, Wyoming, and Utah have discussed the possibility of offering a series of tri-state workshops for dairymen. While this may be of interest to extension �folks,� it may not be of interest to you as a dairy producer. If you would be interested in attending a workshop on the use of milk futures and options, please contact your local county agent or myself (435/797-2294). If there is sufficient interest we will offer workshops in some of the major dairy producing areas of the state. These workshops would not be offered to encourage the use of futures or options, but to provide information on when these tools might be considered by a producer and how the information associated with them might be used in making management decisions.